Oltman v. Holland

Court of Appeals for the Ninth Circuit·Decided August 18, 2008·No. 07-35135·Published

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

JACK OLTMAN, individually and as  Executor of the Estate of Bernice Oltman; SUSAN OLTMAN, Plaintiffs-Appellants, No. 07-35135 v.

 D.C. No.

CV-05-01408-JLR

HOLLAND AMERICA LINE, INC., a Washington corporation; HOLLAND OPINION AMERICA LINE—USA, INC., a Delaware corporation, Defendants-Appellees.

Appeal from the United States District Court for the Western District of Washington James L. Robart, District Judge, Presiding

Argued and Submitted

July 9, 2008—Seattle, Washington

Filed August 19, 2008

Before: Richard R. Clifton and N. Randy Smith, Circuit Judges, and Brian Sandoval,* District Judge.

Opinion by Judge Clifton

*The Honorable Brian Sandoval, United States District Judge for the District of Nevada, sitting by designation.

10985

10988 OLTMAN v. HOLLAND AMERICA LINE

COUNSEL

Noah C. Davis (argued), In Pacta, PLLC, Seattle, Washington , for the plaintiffs-appellants.

John P. Hayes (argued) and Paul S. Smith, Forsberg & Umlauf, P.S., Seattle Washington, for the defendantsappellees .

OLTMAN v. HOLLAND AMERICA LINE 10989 OPINION

CLIFTON, Circuit Judge:

Jack Oltman and his mother, Bernice Oltman,1 allege that they both contracted a serious gastrointestinal illness on a cruise ship operated by Defendants Holland America Line, Inc. and Holland America Line—USA, Inc. (collectively, Holland). Together with Jack’s wife Susan, they filed an action against Holland in Washington state court, which later dismissed the action based on a forum selection clause in the cruise contract.2 The same day the state court dismissed the action, the Oltmans filed an essentially identical action against Holland in the federal court specified in the forum selection clause. Holland moved for summary judgment, arguing that the federal filing was too late based on a one-year limitations clause contained in the cruise contract. The Oltmans objected, arguing, among other things, that their filing in state court had been timely even though the one-year period had expired prior to their federal filing. The district court granted summary judgment on all claims in favor of Holland after concluding the claims were time-barred under the contract .

The primary question presented by this appeal is whether the contractual limitations period should have been equitably tolled based on the timely filing of the state court action and the prompt filing in federal court after the state action was dismissed. We answer that question in the affirmative and reverse.

1 Bernice passed away on September 19, 2006. Her interests in this lawsuit are now represented by Jack, as the executor of Bernice’s estate. 2 Because Jack, Bernice, and Susan Oltman share the same last name, in this opinion they are identified by their first names.

10990 OLTMAN v. HOLLAND AMERICA LINE I. Background

Jack booked a cruise for himself and his mother, Bernice, on March 18, 2004. They boarded Holland’s ship, the MS Amsterdam, in Chile less than two weeks later, on March 31, 2004, and arrived in San Diego, California, as scheduled on April 17. They received their travel documents at the time they boarded the ship in Chile.3

The travel documents were contained in a travel booklet, which included their itinerary, the contract governing the cruise (the cruisetour contract), and cancellation information. The contract began on page 11 of the booklet and stated that it was “ISSUED SUBJECT TO THE TERMS AND CONDI- TIONS ON THIS PAGE AND THE FOLLOWING PAGES.” The contract advised the Oltmans to “READ TERMS AND CONDITIONS CAREFULLY.” The contract noted that “THIS DOCUMENT IS A LEGALLY BINDING CON- TRACT” and included a forum selection clause stating that any lawsuit arising out of the cruise or contract must be litigated in the United States District Court for the Western District of Washington or, if that court lacked subject matter jurisdiction, “in the courts of King County, State of Washington .”

The contract also informed the Oltmans that “YOUR ATTENTION IS ESPECIALLY DIRECTED TO” various clauses in the contract, including clause A.3, which provided:

3. Time Limits for Noticing Claims and Filing and Service of Lawsuits. In any case governed by 3 According to Jack, they received their travel documents either “six days prior to the cruise[ ] or at the time [they] boarded the cruise ship in Valparaiso, Chile.” Construing this evidence in the light most favorable to the Oltmans, for purposes of this appeal we assume they received the travel documents at the time they boarded the ship. See Olsen v. Idaho State Bd. of Med., 363 F.3d 916, 922 (9th Cir. 2004).

OLTMAN v. HOLLAND AMERICA LINE 10991 46 United States Code Section 183b, which is a United States statute that permits any shipowner to limit the time during which a passenger may file a claim or commence suit against a shipowner, you may not maintain a lawsuit against us or the Ship for loss of life or bodily injury unless written notice of the claim is delivered to us not later than six (6) months after the day of death or injury, the lawsuit is commenced not later than one (1) year after the day of death or injury, and valid service of the lawsuit on Owner, the HAL Company or the Ship, as applicable, is made within thirty (30) days following the expiration of that one-year period. For all other claims, including but not limited to claims for loss or damage to baggage, breach of contract, illness or death or injury, not governed by 46 United States Code Section 183b, you may not maintain a lawsuit against us or the Ship, nor will we or the Ship be liable therefore, unless we are provided with written notice of claim within thirty (30) days after conclusion of the Cruise or Cruisetour, the lawsuit for such claim is commenced not later than one-year after conclusion of the Cruise or Cruisetour, and valid service of the lawsuit on Owner, the Ship or the HAL Company, as applicable, is made within thirty (30) days following the expiration of that one-year period.

While on the cruise, Jack and Bernice allege that they contracted “a severe gastrointestinal disease [that] broke out and infected many of the passengers.” On April 16, 2004, the day before the ship arrived in San Diego, Jack visited the ship’s infirmary for “stomach discomfort.” That night, Jack “felt much better.” The next morning, however, his “disposition changed drastically” and he “fell horribly ill” with “pounding in my head,” “aching throughout my body,” and “feelings of being hot and cold” and “nauseas with diarrhea.” Jack and 10992 OLTMAN v. HOLLAND AMERICA LINE Bernice continued to suffer from the “illness, its symptoms and/or side effects” for more than a year.

On March 30, 2005, shortly before expiration of the one- year time limit set by the contractual provision quoted above, the Oltmans, who were then residents of California, filed a complaint against Holland in King County Superior Court. It alleged, among other things, that Holland’s negligence led to the illnesses of Jack and Bernice. The complaint also included a claim by Susan for loss of consortium.

Holland moved to dismiss that action on the ground that the forum selection clause required the action to be filed in the U.S. District Court for the Western District of Washington. On August 12, 2005, the state trial court granted that motion. The Oltmans appealed that state court dismissal, but to protect themselves, they also filed the current action in the Western District of Washington on the same day the state court action was dismissed.

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